The two-week ceasefire announced by US with Iran will not restore container shipping operations through the Strait of Hormuz to pre-conflict conditions, with ocean supply chain disruption and elevated rates expected to continue, according to an industry expert.
US President Donald Trump said he had agreed to a two-week ceasefire with Iran on Tuesday on the condition that Iran agrees to reopen the critical Strait of Hormuz, while Iran’s supreme leader has instructed all military units to stop firing.
A temporary ceasefire in the Iran conflict has brought a visible sense of relief to the Gulf travel industry after weeks of disruption that affected flights, hotel bookings and regional travel confidence.
Time is rapidly running out for Donald Trump’s ultimatum to Iran, with the American president warning that Tehran faces devastating consequences if it fails to reopen the Strait of Hormuz before his deadline of 8:00 p.m. EDT Tuesday (00:00 GMT Wednesday).
Iran said on Monday it wanted a lasting end to the war with the US and Israel, and pushed back against pressure to swiftly reopen the Strait of Hormuz under a temporary ceasefire as US President Donald Trump warned the country could be "taken out" if it did not meet his Tuesday night deadline to reach a deal.
The sharp rise in global air cargo rates following the outbreak of war involving the US, Israel and Iran is showing signs of slowing, as a fragile ceasefire allows capacity to gradually return to Middle East markets. The recovery was led by Gulf markets, where the capacity shortfall narrowed to 46% from 53%.
Oil prices edged lower in early Tuesday trading as markets pinned cautious hopes on a revival of US-Iran diplomacy, even as tensions around the Strait of Hormuz underscored the fragility of the situation ahead of the expiry of a two-week ceasefire.
US President Donald Trump has announced a 10-day ceasefire between Israel and Lebanon, which he said would begin at 5 pm EST (10 pm GMT).
